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<p>The Government uses a range of information from a number of different sources to
consider the affordability of childcare, including: our ‘Childcare and early years
survey of parents’ (<a href="http://www.gov.uk/government/statistics/childcare-and-early-years-survey-of-parents-2012-to-2013"
target="_blank">www.gov.uk/government/statistics/childcare-and-early-years-survey-of-parents-2012-to-2013</a>),
independent surveys, such as the Family and Childcare Trust Annual Childcare Cost
Surveys (<a href="http://www.familyandchildcaretrust.org/childcare-cost-survey-2015"
target="_blank">www.familyandchildcaretrust.org/childcare-cost-survey-2015</a>), and
the recent House of Lords Select Committee’s report on affordable childcare – to which
we responded on 17 December 2015 (<a href="https://www.gov.uk/government/publications/affordable-childcare-response-to-the-select-committee-report"
target="_blank">https://www.gov.uk/government/publications/affordable-childcare-response-to-the-select-committee-report</a>).</p><p>
</p><p>We are committed to supporting hard-working parents with the costs of childcare
and to make it more affordable. That is why we will be investing an extra £1 billion
per annum by 2019-20 to help hardworking families with the cost of childcare. Since
2008 nursery costs have been increasing well above inflation, but the latest survey
from the Family and Childcare Trust suggests that the nursery costs of childcare in
England for both under and over two-year-olds have remained largely flat across all
settings in the last year.</p><p> </p><p>We are already funding 15 hours a week of
free early education for all three- and four-year-olds and for disadvantaged two-year-olds
– this saves families around £2,500 per child per year. From September 2017, we will
go further, delivering an additional 15 hours of free childcare for the working parents
of three- and four-year olds (with early implementation in some areas from September
2016) – worth around another £2,500 per child per year. We also continue to invest
in the Early Years Pupil Premium.</p><p> </p><p>We are also introducing Tax-Free Childcare
from early 2017, under which around 2 million families could benefit by up to £2,000
per child per year or £4,000 per child per year if a child is disabled.</p><p> </p><p>For
working parents on low and middle incomes, working tax credit pays up to 70% of their
childcare costs and, as of April 2016, this has increased to 85% under Universal Credit.
This support will be available, for the first time, to those working fewer than 16
hours per week.</p>
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